The concept of gross domestic product first emerged out of crisis. The world was still mired in the great depression and another war was imminent. Governments wanted an annual measure of their economies' output so that they could manage their wartime ... See More +The concept of gross domestic product first emerged out of crisis. The world was still mired in the great depression and another war was imminent. Governments wanted an annual measure of their economies' output so that they could manage their wartime planning needs. If crisis was a trigger to adopt Gross Domestic Product (GDP) in the 1940s, there is a crisis now that is calling out for a different measure. Our climate is changing, our fisheries are depleted, our soils are degraded, and our water supplies are overextended. We now need a measure that goes beyond just the annual output of a country. We need a measure that looks at wealth in its entirety combining produced, social, human, and, importantly, natural capital. Both developed and developing countries are looking beyond GDP to help them address today's challenges. A number of countries are already undertaking natural capital accounting by compiling accounts for water, energy, and minerals to be able to manage them better or to evaluate the trade-offs needed for making different development decisions. Lack of information results in the overexploitation and deterioration of natural assets. As GDP grows in the short term, natural assets like forests and fisheries may be being depleted and so become unavailable for future generations. By fully accounting for minerals and energy, fisheries, water, forests, and ecosystems, countries can provide more accurate information to their policy makers. This can lead to better economic decisions about development priorities and investments.
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